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Medtech Under Pressure After U.S. Trade Probe

European stock markets slipped on Thursday as fresh concerns about U.S. trade policy rattled investors. The pan-European Stoxx 600 fell 0.2% by mid-morning in London, with nearly all major regional indexes in the red.

The biggest drag came from medical technology firms, which sold off after the Trump administration announced a national security investigation into imports of medical devices, robotics, and industrial machinery. The move raised alarm that these sectors could be the next to face steep U.S. tariffs, following similar measures on steel, aluminum, and more recently, Swiss goods.

Major Medtech Players See Sharp Declines

• Siemens Healthineers dropped 3.6%, erasing billions from its market value.
• Philips slid 2.6%, continuing a challenging year for the Dutch medical technology company.
• Convatec, the London-listed device maker, plunged 5.4%, leading the day’s losses on the Stoxx 600.

Analysts warned that tariffs on medtech imports could disrupt global supply chains and increase costs for hospitals and patients, especially as demand for advanced equipment such as diagnostic machines and surgical robotics rises worldwide.

Retail Sector Shines With H&M at the Top

While medtech firms struggled, the retail sector provided a bright spot. The Stoxx Europe 600 Retail index gained 1.2%, with H&M shares surging 10.5% after the company reported third-quarter results that beat analyst expectations. The earnings surprise helped lift sentiment in an otherwise subdued session.

Broader Market Developments

Beyond the medtech sell-off, investors were also monitoring several key economic updates:

• U.S. Labor Market: The Labor Department is set to release weekly jobless claims, closely watched after Fed Chair Jerome Powell signaled that a slowing labor market outweighed inflation risks. That backdrop supported the Fed’s first interest rate cut of the year earlier this week.
• European Consumer Confidence: Data from Germany’s GfK and the Nuremberg Institute showed a pause in the long-running decline in consumer confidence, thanks to improved income expectations. However, experts cautioned that confidence remains fragile due to persistent concerns over inflation, employment, and geopolitical risks.
• Swiss Central Bank Policy: The Swiss National Bank’s policy update was also in focus after Switzerland was hit with a 39% tariff rate on exports to the U.S. over the summer, raising questions about how the bank might respond to ongoing external pressures.

Global Market Snapshot

Overnight, Asian stocks advanced modestly, while U.S. stock futures traded flat, suggesting a cautious open on Wall Street. European markets, however, remain under strain from both domestic challenges and mounting transatlantic trade tensions.

Outlook

The U.S. probe into medical device imports could mark the beginning of a new flashpoint in global trade, particularly if tariffs follow. With European medtech firms heavily dependent on the U.S. market — one of their largest revenue sources — investors are bracing for further volatility in the sector.

For now, the divergence is clear: retail stocks like H&M are benefiting from strong earnings, while medtech companies face uncertainty as Washington’s trade agenda increasingly targets advanced manufacturing and healthcare-related goods.